Share Repurchase Plan Authorized by NRG Energy (NYSE:NRG)

NRG Energy (NYSE:NRG) announced that its board has initiated a share repurchase plan on Thursday, November 6th, RTT News reports. The company plans to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the utilities provider to repurchase up to 9.2% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

NRG Energy Stock Up 1.2%

Shares of NRG stock opened at $172.15 on Friday. NRG Energy has a 1 year low of $79.57 and a 1 year high of $180.54. The company has a debt-to-equity ratio of 5.99, a quick ratio of 0.88 and a current ratio of 0.93. The business’s fifty day moving average is $164.34 and its 200-day moving average is $154.21. The stock has a market cap of $33.30 billion, a PE ratio of 77.90 and a beta of 1.16.

NRG Energy (NYSE:NRG) last announced its earnings results on Thursday, November 6th. The utilities provider reported $2.78 earnings per share for the quarter, beating the consensus estimate of $1.93 by $0.85. NRG Energy had a return on equity of 88.22% and a net margin of 1.78%.The business had revenue of $7.64 billion during the quarter, compared to analysts’ expectations of $7.53 billion. During the same quarter last year, the business posted $1.90 earnings per share. The company’s quarterly revenue was up 5.7% on a year-over-year basis. Equities analysts expect that NRG Energy will post 6.36 earnings per share for the current fiscal year.

NRG Energy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 17th. Stockholders of record on Monday, November 3rd will be paid a $0.44 dividend. The ex-dividend date of this dividend is Monday, November 3rd. This represents a $1.76 annualized dividend and a dividend yield of 1.0%. NRG Energy’s payout ratio is currently 79.64%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Wells Fargo & Company upgraded shares of NRG Energy to a “strong-buy” rating in a research report on Tuesday, October 28th. Citigroup boosted their target price on shares of NRG Energy from $133.00 to $185.00 and gave the company a “buy” rating in a research note on Thursday, July 17th. Melius Research started coverage on shares of NRG Energy in a research report on Wednesday, August 20th. They issued a “buy” rating and a $308.00 target price for the company. Scotiabank assumed coverage on NRG Energy in a report on Monday, September 22nd. They set a “sector outperform” rating and a $212.00 price target on the stock. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $198.00 price objective on shares of NRG Energy in a research report on Monday, October 20th. Three equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, NRG Energy currently has an average rating of “Buy” and an average target price of $198.31.

Insider Activity at NRG Energy

In related news, VP Dak Liyanearachchi sold 10,672 shares of the stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $155.00, for a total transaction of $1,654,160.00. Following the completion of the sale, the vice president directly owned 48,571 shares of the company’s stock, valued at $7,528,505. This represents a 18.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.86% of the stock is owned by insiders.

NRG Energy Company Profile

NRG Energy, Inc, together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions.